Maybe you've heard from a co-worker, or seen a somewhat absurd, high energy commercial on late night television about the U.S. government giving away millions of dollars daily in "cash grants" and "free money" and you're wondering how much of this is true and how much of it is hype. Well, the good news is grants are real - just not as flexible, or easy to get as some advertisers would have you believe. If Oprah Winfrey gives you a million dollars, she is giving you a grant. If the Department of Education pays for your college tuition they are also giving you a grant. Simply put, grants are sums of free money you can receive and spend and you will not have to pay the money back (accept for under rare circumstances where you misuse the grant money). The money is given to you conditionally - to be used for a specific purpose deemed to be a good cause. This could be removing health and safety hazards from your home, or furthering your education, or starting a non-profit organization to help soldiers with PTSD.

Who qualifies to receive a grant? There are programs for every demographic. Every year over thirty million people in the United States receive over 450 billion dollars in grants, benefits and other forms of free money. The average citizen will often times qualify for at least a dozen financial assistance programs they never knew existed. And not just poor people. It's true many programs are based on need, however if you're middle income, or even well off, there are still a handful of grant programs and agencies that will help you.

As far as grants for small business, this is where a small grain of truth becomes hugely distorted on many websites and late night TV commercials. There is only a very small selection of grants available for starting or expanding a for-profit business. The business has to involve one of several types of scientific research that the government is interested in and the money is only given to the most brilliant minds in the nation. The idea that the average American wanting to start a for-profit business can fill out a grant application and get $50,000 in free money from a "secret source" to start a restaurant, or a retail store, or any for-profit business, is absurd.

It's not all hopeless though. The government does make available a full menu of financial assistance programs that can help you start or expand a business, just know that these are loans, microloans, loan guarantees, etc. and not grants. For more info on funding for your small business your first stop should be the Small Business Administration website at http://www.sba.gov.

If you don't know anyone who's gotten a grant, there's a good reason for that; most people never take the steps necessary to find out what's available, what they qualify for, how to apply, etc. The government spends very little money advertising these programs. And if you think hard enough, you probably do know at least one person who received a Pell Grant to help cover their college education tab. The Pell Grant, based on financial need, provides up to $4,600 per year now. These are the only grant programs most people typically see ads for - college grants and financial aid. No matter what kind of public transportation you're on you can see the posters. There are thousands of other financial assistance programs being administered by Federal, State and local government agencies. Not to mention non-government sources, such as foundations, non-profits and corporations that give back to their communities.

So where do you get in line for some free money? The process of applying is probably very different from how you imagine it to be. Most people think it's going to be like going to the DMV, filling out some forms, maybe presenting some paperwork to show your income and bills, etc. and then your grants will be automatically issued like a driver's license. People would like the process to be like shopping at K-Mart, or Wall-Mart... The customer walks in, sees what they like, grabs it and heads to the check-out line. Grant seekers dream of a government grant office in some mysterious building where they will invite you in, get you a cup of coffee, ask you to sit down and share your problems and while you're talking, they'll get on the computer and just lickety-split pull up your grants, have you sign a few forms and then maybe even print the check right there. But the government does not have an office like that.

Here's what they do have: If you're not applying for a block grant, or project grant, and you're just wondering if there are any handouts you could be taking advantage of, then a good starting point is to simply fill out your Gov. Benefits Survey. This is a survey full of multiple choice questions and when completed it will provide you with a custom list of Federal and State benefits that you'll qualify for. This is not a complete list of what's available, but it's a good starting point.

Here are the two major online portals for grants and financial assistance maintained by the government:

http://www.cfda.gov - The Catalog Of Federal Domestic Assistance.

http://www.grants.gov - This is where you submit applications and proposals for Federal project grants nowadays. Some smaller government agencies don't use this system yet - but most do.

The bottom line is that grant programs are real and the money is provided for specific, good causes. Advertisers claiming you can get free money to start a for-profit business, or to purchase luxurious toys are taking a small grain of truth and twisting it into a lie that never stops perpetuating. If you're hoping to get thousands of dollars in free tax payer money to pay off your credit cards you might as well put a tooth under your pillow and wait for the tooth fairy.